UK house price inflation cooling.
Average house prices increased by just 0.1% from the previous month to £271,000, the slowest growth since March, when prices fell by 0.4%, according to the Office for National Statistics. House price inflation measured on an annual basis cooled to 10.4% from a seven-year high of 12.1% in September.
London and the south east house prices have seen the biggest gains for the year to October, elsewhere in the UK the ONS state that prices grew by 6.7% on average, these gains may be good for some but for the likes of young people and families trying to get on the property ladder it only makes it tougher, trying to obtain a mortgage for most houses across the UK with the stricter rules brought in by the Bank of England has become a nightmare for many, finding themselves stuck in the rent trap, with little hope of saving for a deposit.
The government announced on monday a scheme for first time buyers under the age of 40, under the Starter Home programme 100,000 properties will be offered at a discount of at least 20%, this will go some way to help, but still makes buying a home out of reach for those who unable to connect with the starter home scheme. Some relief came from the Autumn statement by way of stamp duty reduction on properties, the Chancellor stated that 98% of homebuyers would benefit from the cut in tax.
The Council of Mortgage Lenders said on tuesday it expected mortgage lending to increase in 2015 and 2016 but at a slower pace than this year, positive prospects for economic growth, job creation and real wage growth, coupled with low interest rates, should underpin the housing market.